Posted on: 14th Jan, 2010 06:22 pm
we have a high credit card interest rate with very good credit,no bk's. should we refinance and get the difference or take a second mortgage? we also assumed this mobile home with a high rate of 10% and we owe 58,000.00. it is a 2001 w/ 4 bedrooms. if possible we would like to lower the home interest rate and take $10.000.00 to pay credit card.
Hi starmans,
A 10% interest rate on the mobile home loan is high. You should try and refinance it at a lower interest rate. You can also consolidate your credit card debt into the loan and make a single payment to pay off both the home loan and the credit card. If you can get a lower interest rate on the refinance loan and can consolidate both the debts into single payment, you can save some amount of money each month.
I'd suggest you to refinance the existing mobile home loan and consolidate your credit card debt. Taking out a second mortgage to pay off the credit card will not help you much.
A 10% interest rate on the mobile home loan is high. You should try and refinance it at a lower interest rate. You can also consolidate your credit card debt into the loan and make a single payment to pay off both the home loan and the credit card. If you can get a lower interest rate on the refinance loan and can consolidate both the debts into single payment, you can save some amount of money each month.
I'd suggest you to refinance the existing mobile home loan and consolidate your credit card debt. Taking out a second mortgage to pay off the credit card will not help you much.
Hi starmans!
Welcome to forums!
Rather than taking a second mortgage, I would suggest you to refinance your present loan in order to get a better interest rate. However, in order to get a refinance, you should have equity in the property. You haven't mentioned whether or not there's equity in the property. Also, you should refinance the loan only if you plan to stay in the property for a longer period of time i.e. about 7-9 years. While you refinance the loan, you'll have to pay the closing costs.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
Rather than taking a second mortgage, I would suggest you to refinance your present loan in order to get a better interest rate. However, in order to get a refinance, you should have equity in the property. You haven't mentioned whether or not there's equity in the property. Also, you should refinance the loan only if you plan to stay in the property for a longer period of time i.e. about 7-9 years. While you refinance the loan, you'll have to pay the closing costs.
Feel free to ask if you've further queries.
Sussane
The property origianally went for 150,000.00 on the market but we just took it over from a friend who needed to move suddenly. We do plan so stay there for a long time. What other costs beside the closing costs and can any of these be added into the process rather then paid upfront?
Hi starmans,
While you refinance the loan, you'll have to pay the closing costs, the escrow as well as the refinance loan application fee. If you want to add some of the fees into the process, you'll have to speak to the lender and negotiate about it. However, if you do so, you may have to pay a higher interest rate on your loan.
Thanks
While you refinance the loan, you'll have to pay the closing costs, the escrow as well as the refinance loan application fee. If you want to add some of the fees into the process, you'll have to speak to the lender and negotiate about it. However, if you do so, you may have to pay a higher interest rate on your loan.
Thanks